Lending Your Car? Are You Liable?

Last week, as I was preparing for my next vacations, I got a question from my dad. You see, my wife, kid and I are going to Virginia Beach where we’ll be meeting with my parents. We’re flying there but they’ll be driving so he asked me a question.

“If I lend you my car, will you be covered and if so by which insurance?”

Fairly easy question I thought but then I had doubts so I researched it online and also asked my insurance broker about it. Thankfully, they both came back with the same answer:) Basically, yes I’m free to borrow the car but my dad’s car insurance will be the one that applies. In order to drive my dad’s car I need:

-his consent
-to have a valid driver’s license
-to be an occasional driver

That last point wasn’t as clear to me. From what I can understand, you are occasional if you don’t live in the same place and very rarely use the car. In other cases, I’d actually need to be added to the car insurance. So yes, to answer that question, I will be able to drive his car. And no, my dad does not drive an Audi R8 (that you can see on the right) haha… I wish he did!

Have you ever lent out your car to a friend or a family member? If so, id you think about the possibility of an accident?

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